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How To Increase Retail Sales Within Same Footfalls

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how to improve productivity even if footfalls are same

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  • With a gusture of smile and greetings to customer by the salesman make the customer a pause to think.Then an approach with providing a carry bag/shopping bag along withcommunicating deal of the day to the customer by the salesman makes him more comfortable in the shop.Helping the customer throughout his/her shopping time in the store
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How To Increase Retail Sales Within Same Footfalls

  1. 1. How to increase retail sales within same footfalls Sharpening selling skills and increasing service standards has never been as important as it is today, considering the current downturn and footfall being far below what it was the same time last year. The average buy per customer has also fallen. The following is the burning question that is the key to sustainable sales and maximum results: - How do we increase sales within the same footfall and increase the ticket size per customer? You may not be able to guarantee an increase in footfall, but you can surely increase sales within the same footfall. The following are a few pointers in that direction: -  Sell higher-price-point products to customers Customers are price-sensitive no doubt and to address that, we have a reasonable portfolio of products that can satisfy the needs of the customer. At the same time, we also stock aspirational products that are at higher-price-points. The trick is to create a zone for the customer whereby he feels comfortable with the presence of products at both ends of the price spectrum. Eventually, the decision on choosing should belong to the customer. A good salesman should be able to highlight all the necessary elements for sale in a manner that is pleasing, honest and convincing. Most customers will graduate to aspirational products if they believe that the decision was entirely theirs.  Focus on selling the additional product (Coordinate-sales) The advantage of sporting a reasonable width in product line also empowers the sales man to sell co-ordinates. The challenge for the salesman is to ensure that the customer is brought up to date about the range in the store and kept fully informed on the brands. This would induce further buying. Thus, a salesman can achieve higher sales. For example, if the footfall in a store is 300 customers a month and if the salesman can induce 25% of these customers to buy 1 more garment than what they originally planned, an extra sale of 75 pieces is then straight away registered.  Sell at least one accessory per 5 bills There has to be a clear focus on accessories eg. caps, belts, handkerchiefs, ties, flip-flops, etc. Accessories are presently the least focused-on by many of the stores and it is curious that even customers do not give them much importance. However, if you do suggest any accessories to him, say handkerchiefs, caps, belts, undergarments etc., the customer many a time, will not resist. This is typical of a customer not ‘sweating the small stuff’ in his purchase. At the end of the day, it is a ‘win win’ situation for both sides.  Assist the customer to buy and do not follow him In most of the stores, the salesperson enjoys following the customer, which many a customer does not like and so, this is not advisable. Moreover, there is often no actual interaction…the salesperson just stands silently behind the customer. It then looks rather like you are keeping an eye on him rather then helping him! Indian customers like to obtain guidance and they appreciate respect. If a salesman could respectfully suggest the right options to them, they will surely become regular customers. This is how a loyal customer is made!  First understand the customer’s need How many salespeople actually comprehend the need of the customer? A smart salesperson does not have to give technical details of the fabric, but he should certainly use soft skills like understanding the reason for the purchase, speaking with the customer on current trends, suggesting season’s colors, etc. He should give advice and suggestions on what may suit the customer best although this is best done in a careful manner. A proper job done of the service to your customer is imperative.  Focus on Conversion Your inventory must be up to date. The staff at the store should know what is on display and what is in the back-end storage area. Also, broken stocks should be kept well under control so as to minimize loss of sales. The higher the conversion the more profit and loyalty you gets.
  2. 2. A simple example given below is apt in this context: -. Particulars Current Increase Scenario by 10% No. of footfall/day 50 50 Conversion Rate 50% 55 25 27.5 Avg. Bill Value 1000 1100 Total Sales 25000 30250 Increase of sales / day 5250 Increase of sales in a month 157500 Current no of stores- e.g. 10 Increase in total sales 1575000 Total Growth of Top line annually 18900000 Growth (In %) 21% All this within the same footfall! In the above case sales in one store getting an average footfall of 50 on a daily basis, has been considered. The average bill value considered is Rs. 1000/- . The challenge is to increase your conversion and average bill value by just 10%. You can see the incremental sale achieved is 21% more than what is regular. As a retail store, you may not have influence over footfall, but you can achieve an additional 21% just by team effort, great service and a sharp focus. For any explanation contact: Alok Sharma alok_sharma1@yahoo.com

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